Chapter 694: Power Permeation

[Chapter 694: Power Permeation]

The taxi pulled over on a street at the top of Beverly Hills. The driver had been enjoying a pleasant conversation with the sleekly dressed, charismatic middle-aged passenger with black hair beside him. Looking out at the luxurious mansions through the window, he joked, "Hey, I never expected your destination would be here. In these kinds of Beverly Hills mansions, you're either visiting a superstar or one of Hollywood's top producers. You're definitely going to make it big!"

Chris Wedge was in a good mood as well, even a bit excited. He smiled broadly as he responded to the driver's comments, paid the fare, grabbed his briefcase, and turned toward the mansion's entrance.

Confirming the address one more time, Chris Wedge rang the doorbell and patiently waited, his mind drifting back to that phone call from a few days ago.

This story started back in 1987 when Chris Wedge was just thirty years old. He resigned from his position at an animation studio and, along with a few friends, founded Blue Sky Studios on the second floor of a dental clinic. After eight years of development, Blue Sky Studios, while still far from reaching the heights of industry giants like Digital Domain and Industrial Light & Magic, had begun to earn some recognition in the visual effects industry. They had over a hundred employees and had even handled some of the CGI for Jumanji the year prior.

A few days ago, the producer who had been in charge of liaising with Blue Sky Studios for the Jumanji film suddenly called him. The producer asked if Chris was interested in computer animation. Chris had always envied his old friend John Lasseter's success in 3D animation and had attempted similar projects himself; without hesitation, he expressed his interest. And that led to today's highly anticipated meeting.

...

A voice from inside the house inquired who was there. Chris Wedge noticed the voice sounded somewhat familiar. He snapped back to attention and replied quickly.

The door opened, revealing a tall, slightly flushed blonde woman. With tousled golden hair and an air of laziness, she wore a loose beige knit sweater with a wide neckline that revealed a hint of her shoulder. Though the sweater was oversized, it couldn't hide the long legs wrapped in tight white jeans.

Chris Wedge stared for a moment until the lady frowned slightly, snapping him back to reality. He awkwardly said, "Miss Roberts, hello. It's a pleasure to meet you. I'm a fan."

As Chris said this, his right hand slightly raised, he looked at Julia's slender fingers gripping the doorknob, finally hesitating to extend his hand.

"Eric and Liz are waiting for you; please come in," Julia replied and tugged at her sweater before turning to walk inside.

Following Julia through the path in the courtyard, Chris had calmed down enough to reflect on how Julia had appeared just a moment ago. He suddenly realized that the Hollywood A-lister didn't seem quite herself. She had looked either just awoken or a bit tipsy, or perhaps more like she was... high. Chris was certain he hadn't detected any alcohol on her; it was already 4 PM, well past lunchtime, and it couldn't possibly be the aftermath of a nap.

Lost in his thoughts as he followed the path, he spotted a young couple coming towards him from the poolside of the mansion. Chris quickly dismissed those scattered thoughts. Ruminating over them wouldn't do him any good; he couldn't afford to let the hosts guess what was on his mind.

Seeing the approaching pair, Chris Wedge eagerly reached out his hand to Eric, who was walking ahead. "Hello, Mr. Williams."

"Hi, Chris. Just call me Eric. This is Liz; you two must have spoken on the phone."

"Of course, Miss Murdoch. It's a pleasure to meet you," Chris Wedge smiled and shook hands with Elisabeth.

The three of them sat down at a round table in the courtyard. Julia brought them coffee but seemed uninterested in the conversation. Instead, she lazily made her way to a nearby lounge chair and flipped through a magazine.

While Chris Wedge felt a bit puzzled about the dynamic between the man and two women in front of him, he cautiously controlled his gaze, trying to avoid glancing too often at Julia, who lay nearby.

"You and Liz have probably already discussed the general situation over the phone. I've seen the effects you did for Alien 3 and Jumanji; they were impressive. I also understand you sought investment from Columbia for an animated short film during Jumanji's production but didn't succeed, correct?"

Chris Wedge nodded. "Yes, Eric. I worked on outsourced Disney projects back when I was at my original studio and have always been very passionate about animated films."

Elisabeth asked, "If you were looking to invest in animation, you should've gone to Firefly, right? Why Columbia?"

Chris felt a bit embarrassed about how to respond and exchanged a glance with Eric without knowing what to say.

After finishing her question, Elisabeth quickly realized the implications. Firefly already had the industry's leading 3D animation technology and would hardly be interested in Blue Sky Studios.

Eric seemed to overlook Elisabeth's question entirely and dove straight into discussing 3D animated films with Chris. Wedge had prepared extensively over the last few days and skillfully addressed all of Eric's questions, even displaying a set of animation short storyboards he had prepared in advance.

Despite having some technical background, an animation studio still needed to start with animated shorts to venture into 3D feature films. Pixar had accumulated sufficient experience after producing shorts like Luxo Jr. and Tin Toy before tackling feature-length animations.

After half an hour, Chris Wedge put away the storyboards and said, "Eric, this short only needs a $3 million investment. If I can secure funding, I promise to deliver a project within six months that will showcase our capabilities in handling animated features."

Eric shook his head. "Chris, I'm not looking to invest in Blue Sky Studios."

Chris had just displayed disappointment at what he believed was his carefully prepared short animation script failing to meet Eric's approval. But then Eric followed up, "I'm looking to acquire Blue Sky Studios."

Chris Wedge immediately raised his head. "Eric, are you saying... acquisition?"

Eric nodded, a smile on his face. "Yes, acquisition."

Though not deeply embedded in Hollywood circles, Chris was somewhat aware of Eric and Elisabeth's relationship. He always thought it was probably Fox that showed greater interest in Blue Sky Studios; if an acquisition was on the table, it would likely be Elisabeth representing Fox who would make the approach.

However, after half an hour of discussion, Chris Wedge gradually realized Eric was still the one calling the shots, leaving him further perplexed. Firefly already owned Pixar and Disney Animation. If they were looking to expand within animated films, it should have been confined to those two studios.

While Chris knew he wouldn't refuse the acquisition offer, he asked cautiously, "Eric, may I know why?"

"Of course," Eric explained. "Even though animated films have always been limited to a PG-13 rating due to their audience, Disney has a lot of great ideas that don't align with their core values. If these ideas were distributed by Disney, they would tarnish their established brand image. So, I plan to take these ideas and hand them off to an animation studio operating completely outside of the Disney system for production and to be released by other film companies."

Chris Wedge asked, "Doesn't Firefly has many other film companies under its umbrella?"

"Disney is a significant brand within the Firefly system. If Firefly's other film divisions produce animated films, audiences will inevitably think of Disney. What I'm aiming for is complete separation."

Chris nodded and glanced at Elisabeth. "So, Eric, what's the acquisition offer?"

"To indicate our intent for long-term cooperation, we're not looking for a full acquisition. Firefly and Fox will each invest $5 million to acquire 45% of Blue Sky Studios, and you can retain 10%. Also, Firefly will provide technical support for the animation studio. The animated films produced by the studio will be released by Fox."

A $10 million offer for 90% ownership was far below Chris Wedge's expectations; after all, it was eight years of his hard work. However, Eric's promise of technical support made Chris Wedge think twice. The top-notch 3D animation technology in Firefly was not something money could buy; it had enabled Firefly to dominate the 3D animated film market in recent years.

After a moment of consideration, Chris Wedge decisively nodded. "Eric, I agree to the deal."

"Great, I hope we can have a pleasant collaboration in the future." Eric stood and shook hands with Chris Wedge, and they sat back down as Eric began outlining his detailed plan.

As sunset approached, Chris Wedge, sensing the mood, kindly excused himself. Specific acquisition agreements would be discussed in more detail in the coming time.

...

After sending off Chris Wedge, the two returned to the poolside. Elisabeth looked at Julia, who was still languidly reclined on her lounge chair. "Eric, did you see that? Chris Wedge stole more than a few glances at Julia. I'm pretty sure he's suspecting she might be high. If that gets out, it would be big news!"

Suddenly, Julia, as if coming back to life, threw the magazine in her hands at Elisabeth and retorted, "You're the one who's high! I'm just a little tired!"

"Ha! Let me check to see if you're really tired," Elisabeth said, lunging toward Julia to grab her waist but was met with Julia swiftly lifting her foot and kicking.

Plop--

Caught off guard, Elisabeth tipped into the pool.

"Ah, ugh..."

After surfacing quickly, Elisabeth clung to the edge of the pool and huffed angrily, "Forget this! I'm not talking to you anymore, you wicked woman, trying to murder your own partner."

Eric laughed as he helped Elisabeth out of the pool, urging her to change clothes. He then turned and sat where Julia had been lounging, wrapping his arms around her and pulling her onto his lap.

Having just recovered her spirits after being teased by Elisabeth, Julia melted into Eric's embrace, quietly purring softly, like a cat that had lost its bones, soon returning to her previous lazy and dreamy state.

Elisabeth returned to the conversation after changing clothes, towel drying her wet hair. Seeing Julia slack against Eric, she refrained from poking the bear this time and sat nearby instead. "Eric, you've been talking about animated film concepts that don't align with Disney's distribution style. Do you already have something in mind?"

Eric picked up the magazine Julia had previously held and casually flipped through it. "Not long ago, I came across a completely anti-fairy tale picture book by William Steig. You can start working on securing the adaptation rights for that project soon."

"What? You didn't explain clearly at all."

Eric chuckled, "Tomorrow, you should buy a copy and take a look for yourself. The book essentially subverts all the classic Disney fairy tale tropes, but I think it's fascinating. It could definitely make for a unique animated film, though it can't be distributed by Disney or any of Firefly's affiliated studios, or else it would severely damage Disney's carefully crafted brand image. That's why I thought of forming an independent animation studio outside of Firefly."

Elisabeth became interested. "Oh, what's the name of this book?"

Eric replied, "Shrek."

In this timeline, DreamWorks' Shrek was an animation project that Jeffrey Katzenberg created in retaliation against Disney after leaving the company. From the quality of the film, it was evident that the investment was low and the production rushed. Yet, surprisingly, this low-budget animated film that parodied Disney fairy tales became a massive box office hit, even claiming the title of North America's box office champion that year, reviving DreamWorks Animation from its precarious position. Since Jeffrey hadn't left Disney in this timeline, DreamWorks had taken a different turn. Eric was nearly certain that if he didn't get involved, an alternative film like Shrek wouldn't even appear in this world at all.

Recently, Eric had been sorting through memories of past films while seeking projects for Firefly to pursue for the upcoming summer. Unsurprisingly, titles like Shrek and Ice Age popped to mind.

While those animated films had performed on par with Disney animations at the box office, they also diverged from the core spirit of Disney films. Moreover, the 3D animation market had not reached saturation yet. By partnering with Fox to acquire Blue Sky Studios, not only could unsuitable Disney animation projects be placed within this studio to continue earning Firefly substantial profit, but it would also enable Eric to maintain Firefly's influence over Fox through collaboration.

Reflecting on this, Eric suddenly thought of something else and turned to Elisabeth, "Liz, one more thing: now that we have Blue Sky, are you interested in buying a toy company?"

Elisabeth blinked in confusion, "A toy company? Why?"

"Eventually, Blue Sky will produce animated features that will surely require merchandise," Eric explained.

Elisabeth looked at him for a few moments then rolled her eyes, "You're just rambling. Few people would buy an entire restaurant just to eat a steak!"

"Alright," Eric smiled, "Actually, I'm talking about the toy company's rights. Hasbro, you know?"

"Transformers?" Elisabeth blurted out, then perked up, "Wait, are you talking about Transformers?"

Eric nodded. "You see, just mentioning Hasbro made you think of Transformers. That's how huge this toy franchise is. If developed into a live-action film, it would have incredible potential."

"But we don't need to buy Hasbro. We can just buy the rights to Transformers," Elisabeth countered.

"Of course not. Copyright comes with expiration limits, and Hasbro isn't foolish enough to sell you permanent rights. We need to acquire Hasbro to ensure it's a done deal. Once the technology for effects advances over the coming years, I believe the value of the Transformers rights will be nearly on par with Star Wars."

"You're exaggerating. What film rights could possibly rival Star Wars?" Elisabeth instinctively shook her head. Star Wars' impact had been deeply rooted in the minds of the audiences, and even Julia, resting on Eric's leg, gently shook her head in agreement.

However, Elisabeth quickly reconsidered. If the statement had come from anyone else, it might not hold much weight, but given Eric's words, the impact felt different. "Eric, are you serious?"

Eric affirmed with a nod. "Do I look like I'm joking?"

Elisabeth rolled her eyes. "Then why doesn't Firefly just acquire Hasbro outright?"

Eric shrugged. "Firefly's goals are too ambitious. If we make a move, there would be contenders popping up, and Hasbro would surely set a high price. My plan is similar to the acquisition of Blue Sky Studios: Fox can be the face, and Firefly operates from behind the scenes. We grab Hasbro first, and then we split the deal. What do you think?"

Elisabeth narrowed her eyes, clearly calculating. "What if I don't plan to share?"

Feigning a menacing demeanor, Eric clenched his fist, cracking his knuckles, "Then I might have to resort to force."

Elisabeth didn't look fazed by Eric's theatrics. Instead, Julia affectionately pulled Eric's fist towards her cheek, brushing against it as she called softly, "Eric..."

Seeing Julia's affectionate gesture, Elisabeth made a face, "I think it's better if you just take her into the house and give her a good exercise."

Eric helplessly pulled Julia up, giving her a playful smack on her rear. "Stop clinging. Let's go make dinner."

"Okay, what do you want to eat?"

"Whatever is in the fridge."

As Julia dreamily swayed away, Elisabeth shrugged, returning to their earlier topic. Given Eric's unwavering confidence, she didn't question it any further and asked, "How much is this company likely to cost?"

"I've looked it up; Hasbro's current market value is about $2.9 billion. A friendly acquisition would be roughly $3.5 billion. In a hostile takeover, it shouldn't exceed $4 billion. Plus, given Fox's influence, I believe the chances of a friendly acquisition are quite high."

"But that's $3 to $4 billion!" Elisabeth hesitated. "Eric, I think we should just buy the Transformers rights for now. Let's extend the copyright duration as much as possible -- twenty years, would that be enough?"

Eric shook his head. "Hasbro has been performing very steadily with net profits around $200 million in recent years. After the acquisition, leveraging Blue Sky's merchandise licensing and Hasbro's toy distribution system will likely enhance future performance significantly. Plus, given the huge potential of Transformers rights, Hasbro is undoubtedly undervalued. Even without film rights development, we would recover our investment within ten years. If Firefly didn't have so many plans in recent years, I'd definitely take this on myself."

Before his rebirth, the Transformers films had already grossed more than $5 billion worldwide, with merchandising revenue being incalculable. Eric recalled Disney had sent an acquisition offer to Hasbro after landing Pixar, Marvel, and Lucasfilm, but Hasbro set a price too high, especially with the Transformers rights held by Paramount; thus, the deal fell through.

With visual effects films shining brighter in Hollywood in recent years, Eric was certain others would soon notice the Transformers rights. If not secured soon, there would be plenty of regret later. In Hollywood, copyright licensing typically lasted twenty years at most. However, Eric knew that twenty years later, Transformers would still be popular; even if the timeline were adjusted, the franchise would likely outlive Harry Potter. Hence, a two-decade copyright extension would be far too short. Furthermore, Hasbro would certainly resist selling the Transformers rights for only twenty years. It was wiser to acquire the company fully now rather than risk copyright lapses while the Transformers series reaches its peak.

The reason for sharing this cake with Fox was twofold: First, Firefly already possessed Marvel, a monumental licensing treasure that could be developed for decades, alongside numerous animated and live-action film rights. It was impossible to monopolize all profits due to limited release time and schedule. Secondly, Firefly had reached a development cap; due to antitrust issues, it could no longer aggressively merge with other film companies. Therefore, collaboration had become Eric's best avenue for penetrating the Hollywood system. This would allow him to gain profits while gradually expanding his control over Hollywood, just like MGM at the time. Through various film project collaborations, the invisible power Eric wielded within the company rivaled that of its CEO. If he spoke up, the controlling shareholder, Credit Lyonnais, the major shareholder of MGM, will definitely replace the helm of MGM without hesitation.

*****

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